The Hartford Reports Second Quarter 2017 Net Loss Per Diluted Share Of $0.11 And Core Earnings Per Diluted Share* Of $1.04

•Core earnings* of $389 million compared with $122 million in second quarter 2016, which included unfavorable prior accident year development (PYD) of $228 million, after tax; core earnings per diluted share* were $1.04 compared with $0.31 in second quarter 2016

•Current accident year catastrophe losses totaled $155 million, before tax, down 16% from $184 million, before tax, in second quarter 2016; favorable PYD was $10 million, before tax, compared with unfavorable PYD of $351 million, before tax, in second quarter 2016, which included $268 million from asbestos and environmental and $75 million from personal auto

•Commercial Lines combined ratio of 94.6 improved 0.4 point from second quarter 2016 primarily due to a 1.1 point decrease in current accident year catastrophe losses; underlying combined ratio* of 90.9 increased 1.1 points from second quarter 2016 primarily due to auto and property losses and higher underwriting expenses

•Personal Lines combined ratio of 101.4 improved 11.2 points from second quarter 2016 due to improved auto results and lower current accident year catastrophes; underlying combined ratio of 92.6 improved 1.6 points from second quarter 2016

•Group Benefits net income of $69 million and core earnings of $61 million rose 25% and 33%, respectively, over second quarter 2016 due to improved group life and group disability loss experience and premium growth

The Hartford (HIG) reported a net loss of $40 million and core
earnings of $389 million for second quarter 2017 compared with net
income of $216 million and core earnings of $122 million in second
quarter 2016. Second quarter 2017 net loss per diluted share was $0.11
compared with second quarter 2016 net income per diluted share of $0.54.
Core earnings per diluted share in second quarter 2017 rose to $1.04
compared with $0.31 in second quarter 2016. Weighted average diluted
common shares outstanding decreased 7% in second quarter 2017 from
second quarter 2016 primarily due to the companys repurchase of 27.9
million common shares for a total of $1.3 billion over the last four
quarters.

* Denotes financial measure not calculated in accordance with
generally accepted accounting principles (non-GAAP); definitions of
non-GAAP measures and reconciliations to their closest GAAP measures can
be found in this news release under the heading Discussion of Non-GAAP
Financial Measures

"The Hartfords second quarter core earnings improved significantly over
2016, with favorable contributions from all segments, including Personal
Lines," said The Hartfords Chairman and CEO Christopher Swift. "Our
capital generation and financial flexibility remain robust, supporting
the return in the first half of 2017 of nearly $820 million to
shareholders, including share repurchases and dividends, and the
repayment of $416 million of debt. With strong results over the past
year, our core earnings return on equity* rose to 9.3% and to 11.3%
excluding Talcott Resolution."

The Hartfords President Doug Elliot said, "Our property and casualty
and Group Benefits results demonstrate our consistent and disciplined
execution. Commercial Lines margins remain very strong with an
underlying combined ratio of 90.9 and Group Benefits had an excellent
core earnings margin of 6.7%. The combined ratio for Personal Lines was
materially better than second quarter 2016, which included the impact of
unfavorable development, and the underlying combined ratio also improved
over the prior year. Results across all our businesses this quarter
benefited from our continued focus on underwriting and pricing rigor in
markets which remain competitive."

FINANCIAL RESULTS SUMMARY

($ in millions except per share data)

Three Months Ended

Jun 30

Jun 30

Change

2017

2016

Net income (loss) by segment:

Commercial Lines

$258

$237

9%

Personal Lines

24

(50)

NM

P&C Other Operations

20

(154)

NM

Property & Casualty

302

33

NM

Group Benefits

69

55

25%

Mutual Funds

24

20

20%

Talcott Resolution

105

104

1%

Corporate

(540)

4

NM

Net income (loss)

$(40)

$216

NM

Less: Unlock benefit, before tax

20

18

11%

Less: Net realized capital gains after deferred policy acquisition

75

51

47%

costs (DAC), excluded from core earnings, before tax

Less: Pension settlement, before tax

(750)

--

NM

Less: Income tax benefit, including amounts related to before tax

226

25

NM

items excluded from core earnings

Core earnings

$389

$122

NM

Weighted average diluted common shares outstanding

372.3

398.6

(7)%

Net income (loss) per diluted share(2)

$(0.11)

$0.54

NM

Core earnings per diluted share(2)

$1.04

$0.31

NM

Select financial measures:

Common shares outstanding and dilutive potential common shares

369.1

394.7

(6)%

Book value per diluted share

$46.84

$47.02

--%

Book value per diluted share (ex. AOCI)

$45.50

$44.74

2%

ROE - Net income(3)

3.9%

7.3%

(3.4)

ROE - Net income, excluding Talcott Resolution(3)

4.2%

10.5%

(6.3)

ROE - Core earnings(3)

9.3%

7.4%

1.9

ROE - Core earnings, excluding Talcott Resolution*(3)

11.3%

8.9%

2.4

Select operating data:

Net investment income

$715

$735

(3)%

Annualized investment yield, before tax, excluding LPs*

4.1%

4.1%

--

P&C net investment income

$302

$292

3%

P&C annualized investment yield, before tax, excluding LPs*

3.8%

3.8%

--

[1] The Hartford defines increases or decreases greater than or equal
to 200%, or changes from a net gain to a net loss position, or vice
versa, as "NM" or not meaningful [2] Includes
dilutive potential common shares [3] Calculated based
on last 12-months net income and core earnings, respectively; for ROE -
Net Income, the denominator is stockholders equity including AOCI; for
ROE - Core Earnings, the denominator is stockholders equity excluding
AOCI

The second quarter 2017 net loss of $40 million was principally due to a
pension settlement charge of $488 million, after tax, or $1.31 per
diluted share that was announced in June 2017. The charge was due to the
purchase of a group annuity contract that transfers responsibility to
Prudential Financial, Inc. (PRU) for about 29% of the companys
U.S. defined benefit pension plan obligations.

Excluding this charge, the improvement in second quarter 2017 results
compared with second quarter 2016 net income of $216 million was largely
due to net unfavorable PYD in second quarter 2016 of $228 million, after
tax, including $49 million, after tax, for personal auto liability and
$174 million, after tax, for asbestos and environmental exposures,
compared with favorable PYD of $7 million, after tax, in second quarter
2017. In January 2017, the company announced that it had purchased from
National Indemnity Company, a subsidiary of Berkshire Hathaway (BRK), an aggregate excess of loss reinsurance agreement that provides up
to $1.5 billion of potential adverse loss development reinsurance on the
companys asbestos and environmental reserves. Beginning in 2017, the
companys annual ground-up asbestos and environmental reserve study will
be conducted in the fourth quarter.

Core earnings for second quarter 2017 totaled $389 million, up
significantly from $122 million in second quarter 2016 due to the impact
of $228 million, after tax, of unfavorable PYD on second quarter 2016.
Excluding the impact of PYD, the improvement in second quarter 2017 core
earnings compared with second quarter 2016 was principally due to lower
catastrophe losses and higher Group Benefits core earnings. Current
accident year catastrophe losses totaled $101 million, after tax, in
second quarter 2017, down 16% from $120 million, after tax, in second
quarter 2016. Group Benefits core earnings rose 33% to $61 million from
$46 million due to lower losses in both group life and group disability
as well as higher premiums compared with second quarter 2016.

Consolidated net investment income declined 3% to $715 million, before
tax, in second quarter 2017 compared with $735 million, before tax, in
second quarter 2016 as a result of lower invested assets, principally
due to the runoff of Talcott Resolution, partially offset by higher
investment income on limited partnerships and other alternative
investments (LPs). Investment income from LPs totaled $48 million,
before tax, or $32 million, after tax, in second quarter 2017 compared
with $40 million, before tax, or $26 million, after tax, in second
quarter 2016. The credit performance of the investment portfolio
remained strong. Net impairment losses including mortgage loan valuation
allowances totaled $12 million, before tax, up from $7 million, before
tax, in second quarter 2016.

Property and casualty (P&C) net investment income rose 3% to $302
million, before tax, in second quarter 2017 compared with $292 million,
before tax, in second quarter 2016 due to higher investment income on
LPs. The P&C annualized investment yield, excluding LPs, was 3.8%, the
same level as second quarter 2016. P&C LP investment income totaled $32
million, before tax, up 39% from $23 million, before tax in second
quarter 2016, due to higher returns on private equity investments.

Return on equity (ROE) - net income was 3.9% for second quarter 2017
compared with 7.3% for second quarter 2016. The reduction in the ROE -
net income from the prior year is principally due to the fourth quarter
2016 charge for the aggregate excess of loss reinsurance agreement on
asbestos and environmental reserves and the second quarter 2017 pension
settlement charge, partially offset by the impact of PYD related to
asbestos and environmental exposures on the prior year ROE - net income.

ROE - core earnings was 9.3% for second quarter 2017 compared with 7.4%
for second quarter 2016. The improvement compared with the prior year is
primarily due to the impact of second quarter 2016 unfavorable PYD
related to asbestos and environmental exposures and Personal Lines auto.

Book value per diluted share as of June 30, 2017 rose 6% compared with
Dec. 31, 2016 to $46.84. The increase in book value per diluted share
reflects a 2% increase in stockholders equity and 3% decrease in common
shares outstanding and dilutive potential common shares. The increase in
stockholders equity was principally due to first half net income of
$338 million and an increase in accumulated other comprehensive income
(AOCI), including the impact of lower market interest rates and tighter
credit spreads since Dec. 31, 2016 on the fair value of the companys
fixed maturity investment portfolio. Excluding AOCI, book value per
diluted share as of June 30, 2017 increased 1% to $45.50 from $45.24 as
of Dec. 31, 2016 due to the reduction in common shares outstanding and
dilutive potential common shares as a result of share repurchases.

During second quarter 2017, the company repurchased 6.6 million common
shares for approximately $325 million. As of July 25, 2017, the company
had repurchased 1.6 million common shares for $85 million in third
quarter 2017, leaving $565 million available under the $1.3 billion 2017
share repurchase authorization. During second quarter 2017, $86 million
of common dividends were paid to shareholders for a total return of
capital to shareholders of $411 million during the quarter.

SECOND QUARTER 2017 SEGMENT FINANCIAL RESULTS SUMMARY

Three Months Ended

($ in millions)

Jun 30

Jun 30

Change

2017

2016

Core earnings (losses)

P&C segments:

Commercial Lines

$238

$221

8%

Personal Lines

20

(52)

NM

P&C Other Operations

18

(154)

NM

Property & Casualty

276

15

NM

Group Benefits

61

46

33%

Mutual Funds

24

20

20%

Sub-total

361

81

NM

Talcott Resolution

80

91

(12)%

Corporate

(52)

(50)

(4)%

Total

$389

$122

NM

Select operating data:

Commercial Lines

Combined ratio

94.6

95.0

(0.4)

Impact of catastrophes and PYD on combined ratio

3.7

5.2

(1.5)

Underlying combined ratio

90.9

89.8

1.1

Personal Lines

Combined ratio

101.4

112.6

(11.2)

Impact of catastrophes and PYD on combined ratio

8.8

18.5

(9.7)

Underlying combined ratio

92.6

94.2

(1.6)

Group Benefits

Loss ratio

76.1%

78.5%

(2.4)

Expense ratio

24.5%

25.1%

(0.6)

Net income margin

7.5%

6.0%

1.5

Core earnings margin

6.7%

5.1%

1.6

Mutual Funds

Mutual Funds net flows

$1,314

$(419)

NM

Total Mutual Funds segment assets under management

$107,679

$91,423

18%

Commercial Lines

•
Commercial Lines net income of $258 million and core earnings of $238
million rose 9% and 8%, respectively, compared with second quarter
2016 primarily due to lower catastrophe losses and higher net
investment income on LPs, partially offset by decreased current
accident year underwriting results, excluding catastrophes.

•
Current accident year catastrophe losses totaled $63 million, before
tax, compared with $80 million, before tax, in second quarter 2016.

•
There was no net PYD in second quarter 2017 compared with unfavorable
PYD of $6 million, before tax, in second quarter 2016.

•
The Commercial Lines combined ratio improved 0.4 point from second
quarter 2016 to 94.6 principally due to lower catastrophes and PYD,
which totaled 3.7 points in second quarter 2017 compared with 5.2
points in second quarter 2016, largely offset by lower underlying
underwriting results.

•
The Commercial Lines underlying combined ratio was 90.9, an increase
of 1.1 points from second quarter 2016 primarily due to higher current
accident year auto and property losses and higher expenses.

Personal Lines

•
Personal Lines net income of $24 million and core earnings of $20
million improved materially from a net loss of $50 million and a core
loss of $52 million, respectively, in second quarter 2016 due to a
favorable change in PYD, lower catastrophe losses and improved
underlying underwriting results.

•
Second quarter 2016 included net unfavorable PYD of $76 million,
before tax, principally from auto liability, compared with net
favorable development of $10 million, before tax, in second quarter
2017, largely from prior accident year catastrophe losses.

•
Current accident year catastrophe losses were $92 million, before tax,
down from $104 million, before tax, in second quarter 2016.

•
The Personal Lines combined ratio was 101.4, including 8.8 points from
catastrophes and PYD, down from 112.6, including 18.5 points from
catastrophes and PYD, in second quarter 2016.

•
The auto combined ratio improved 16.2 points to 100.8 from 117.0 in
second quarter 2016, which included 10.8 points of unfavorable PYD
compared with 0.6 point of favorable PYD in second quarter 2017. The
underlying combined ratio for auto improved 3.6 points to 99.1
compared with 102.7 reported in second quarter 2016, which included
unfavorable loss development on the first accident quarter of 2016.
Taking this, as well as subsequent unfavorable development of accident
year 2016 into account, the second quarter 2017 auto underlying
combined ratio improved by 2.4 points compared with second quarter
2016.

•
The homeowners combined ratio rose 1.0 point to 103.4 from 102.4 in
second quarter 2016 as favorable PYD in second quarter 2017, largely
from catastrophe losses, was more than offset by higher
non-catastrophe weather losses compared with second quarter 2016. The
higher non-catastrophe weather losses were also the primary
contributor to the 3.4 point deterioration in the homeowners
underlying combined ratio to 77.6 from 74.2 in second quarter 2016.

Group Benefits

•
Group Benefits net income of $69 million increased 25% from $55
million in second quarter 2016 and core earnings rose 33% from $46
million in second quarter 2016 to $61 million. The increases were
driven by better group life and group disability loss experience
combined with 2% premium growth as a result of strong persistency.

•
The total loss ratio of 76.1% improved 2.4 points compared with second
quarter 2016 reflecting a 3.9 point improvement in group life due to
elevated severity in second quarter 2016 and a 1.0 point improvement
in group disability principally due to strong recoveries and continued
favorable new claims incidence trends.

Mutual Funds

•
Mutual Funds net income and core earnings of $24 million each rose 20%
compared with second quarter 2016 due to the 18% increase in assets
under management (AUM) over the past year.

•
Total AUM rose to $107.7 billion, up 18% from June 30, 2016, primarily
due to positive net flows and market appreciation, partially offset by
the continued runoff of Talcott Resolution AUM. Excluding Talcott
Resolution AUM, Mutual Fund positive net flows totaled $1.3 billion
due to strong sales in second quarter 2017 compared with net outflows
of $419 million in second quarter 2016.

•
Corporate net loss of $540 million, including the $488 million, after
tax, pension settlement charge, compared with net income of $4 million
in second quarter 2016, which included a $53 million tax benefit from
the reduction in a valuation allowance for capital loss carryovers.

•
Core losses of $52 million increased by $2 million due to the
favorable impact on second quarter 2016 insurance operating costs and
other expenses of the reversal of a legal accrual, partially offset by
lower interest expense in second quarter 2017 as a result of debt
repayments over the past year.

CONFERENCE CALL

The Hartford will discuss its second quarter 2017 financial results on a
conference call at 9 a.m. EDT on Friday, July 28, 2017. The call can be
accessed via a live listen-only webcast or as a replay through the
investor relations section of The Hartfords website at https://ir.thehartford.com.
The replay will be accessible approximately one hour after the
conclusion of the call and be available along with a transcript of the
event for at least one year.

More detailed financial information can be found in The Hartfords
Investor Financial Supplement for June 30, 2017, and the Second Quarter
2017 Financial Results Presentation, both of which are available at https://ir.thehartford.com.

ABOUT THE HARTFORD

The Hartford is a leader in property and casualty insurance, group
benefits and mutual funds. With more than 200 years of expertise, The
Hartford is widely recognized for its service excellence, sustainability
practices, trust and integrity. More information on the company and its
financial performance is available at https://www.thehartford.com.
Follow us on Twitter at www.twitter.com/TheHartford_PR.

The Hartford Financial Services Group, Inc., (HIG) operates
through its subsidiaries under the brand name, The Hartford, and is
headquartered in Hartford, Conn. For additional details, please read The
Hartfords legal notice at https://www.thehartford.com/legal-notice.

HIG-F

From time to time, The Hartford may use its website to disseminate
material company information. Financial and other important information
regarding The Hartford is routinely accessible through and posted on our
website at https://ir.thehartford.com.
In addition, you may automatically receive email alerts and other
information about The Hartford when you enroll your email address by
visiting the "Email Alerts" section at https://ir.thehartford.com.

DISCUSSION OF NON-GAAP FINANCIAL MEASURES The Hartford uses
non-GAAP financial measures in this press release to assist investors in
analyzing the companys operating performance for the periods presented
herein. Because The Hartfords calculation of these measures may differ
from similar measures used by other companies, investors should be
careful when comparing The Hartfords non-GAAP financial measures to
those of other companies. Definitions and calculations of other
financial measures used in this press release can be found below and in
The Hartfords Investor Financial Supplement for second quarter 2017,
which is available on The Hartfords website, https://ir.thehartford.com.

Annualized investment yield, excluding limited
partnerships is the annualized net investment income
excluding limited partnerships and other alternative investments divided
by the monthly average invested assets at amortized cost, excluding
repurchase agreement and securities lending collateral, derivatives book
value, and limited partnerships and other alternative investments.

Three Months Ended

Jun 30 2017

Jun 30 2016

Jun 30 2017

Jun 30 2016

Consolidated

P&C

Annualized investment yield

4.2 %

4.2 %

4.1 %

3.9 %

Annualized investment yield on limited partnerships and other

8.0 %

6.1 %

9.6 %

6.9 %

alternative investments

Annualized investment yield excluding limited partnerships and other

4.1 %

4.1 %

3.8 %

3.8 %

alternative investments

Book value per diluted share excluding accumulated
other comprehensive income ("AOCI"): Book value per diluted
share excluding AOCI is a non-GAAP financial measure based on a GAAP
financial measure. It is calculated by dividing (a) common stockholders
equity excluding AOCI, after tax, by (b) common shares outstanding and
dilutive potential common shares. The Hartford provides book value per
diluted share excluding AOCI to enable investors to analyze the
companys stockholders equity excluding the effect of changes in the
value of the companys investment portfolio and other assets due to
interest rates, currency and other factors. The Hartford believes book
value per diluted share excluding AOCI is useful to investors because it
eliminates the effect of items that can fluctuate significantly from
period to period, primarily based on changes in market value. Book value
per diluted share is the most directly comparable GAAP measure. A
reconciliation of book value per diluted share, including AOCI to book
value per diluted share, excluding AOCI is set forth below.

As of

Jun 30

Dec 31

Change

2017

2016

Book value per diluted share, including AOCI

$46.84

$44.35

6%

Less: Per diluted share impact of AOCI

$1.34

$(0.89)

NM

Book value per diluted share, excluding AOCI

$45.50

$45.24

1%

Core Earnings: The Hartford uses the
non-GAAP measure core earnings as an important measure of the companys
operating performance. The Hartford believes that the measure core
earnings provides investors with a valuable measure of the performance
of the companys ongoing businesses because it reveals trends in our
insurance and financial services businesses that may be obscured by
including the net effect of certain realized capital gains and losses,
certain restructuring charges, pension settlements, loss on
extinguishment of debt, reinsurance gains and losses on business
disposition transactions, income tax benefit from reduction in valuation
allowance, discontinued operations, and the impact of Unlocks to
deferred policy acquisition costs ("DAC"), sales inducement assets,
unearned revenue reserves and death and other insurance benefit reserve
balances. Some realized capital gains and losses are primarily driven by
investment decisions and external economic developments, the nature and
timing of which are unrelated to the insurance and underwriting aspects
of our business.

Accordingly, core earnings excludes the effect of all realized gains and
losses (net of tax and the effects of DAC) that tend to be highly
variable from period to period based on capital market conditions. The
Hartford believes, however, that some realized capital gains and losses
are integrally related to our insurance operations, so core earnings
includes net realized gains and losses such as net periodic settlements
on credit derivatives and net periodic settlements on the Japan fixed
annuity cross-currency swap. These net realized gains and losses are
directly related to an offsetting item included in the income statement
such as net investment income. Net income (loss) is the most directly
comparable U.S. GAAP measure. Core earnings should not be considered as
a substitute for net income (loss) and does not reflect the overall
profitability of the companys business. Therefore, The Hartford
believes that it is useful for investors to evaluate both net income
(loss) and core earnings when reviewing the companys performance.

A reconciliation of net income (loss) to core earnings for the quarterly
periods ended June 30, 2017 and 2016, is included in this press release.
A reconciliation of net income (loss) to core earnings for individual
reporting segments can be found in this press release under the heading
"The Hartford Financial Services Group, Inc. Consolidating Income
Statements" and in The Hartfords Investor Financial Supplement for the
quarter ended June 30, 2017.

Core earnings margin: The Hartford uses the
non-GAAP measure core earnings margin to evaluate, and believes it is an
important measure of, the Group Benefits segments operating
performance. Core earnings margin is calculated by dividing core
earnings by revenues, excluding buyouts and realized gains (losses). Net
income margin is the most directly comparable U.S. GAAP measure. The
company believes that core earnings margin provides investors with a
valuable measure of the performance of Group Benefits because it reveals
trends in the business that may be obscured by the effect of buyouts and
realized gains (losses). Core earnings margin should not be considered
as a substitute for net income margin and does not reflect the overall
profitability of Group Benefits. Therefore, the company believes it is
important for investors to evaluate both core earnings margin and net
income margin when reviewing performance. A reconciliation of net income
margin to core earnings margin for the quarterly periods ended June 30,
2017 and 2016, is set forth below.

Three Months Ended

Margin

Jun 30

Jun 30

Change

2017

2016

Net income margin

7.5%

6.0%

1.5

Less: Effect of net realized capital gains, net of tax, on after tax

0.8%

0.9%

(0.1)

margin

Core earnings margin

6.7%

5.1%

1.6

Core earnings per diluted share: Core
earnings per diluted share is calculated based on the non-GAAP financial
measure core earnings. It is calculated by dividing (a) core earnings,
by (b) diluted common shares outstanding. The Hartford believes that the
measure core earnings per diluted share provides investors with a
valuable measure of the companys operating performance for the same
reasons applicable to its underlying measure, core earnings. Net income
(loss) per diluted common share is the most directly comparable GAAP
measure. Core earnings per diluted share should not be considered as a
substitute for net income (loss) per diluted share and does not reflect
the overall profitability of the companys business.

Therefore, The Hartford believes that it is useful for investors to
evaluate both net income (loss) per diluted share and core earnings per
diluted share when reviewing the companys performance. A reconciliation
of net income (loss) per diluted common share to core earnings per
diluted share for the quarterly periods ended June 30, 2017 and 2016 is
provided in the table below.

Net investment income, excluding limited
partnerships is the amount of net investment income earned
from invested assets excluding the net investment income related to
limited partnerships and other alternative investments.

Three Months Ended

Jun 30 2017

Jun 30 2016

Jun 30 2017

Jun 30 2016

Consolidated

P&C

Total net investment income

$

715

$

735

$

302

$

292

Limited partnerships and other alternative assets

48

40

32

23

Net Investment Income excluding limited partnerships

$

667

$

695

$

270

$

269

Return on Equity - Core Earnings: The
company provides different measures of the return on stockholders
equity ("ROE"). ROE - Net income is calculated by dividing (a) net
income for the prior four fiscal quarters by (b) average common
stockholders equity, including AOCI. ROE - Core earnings is calculated
based on non-GAAP financial measures. ROE - Core earnings is calculated
by dividing (a) core earnings for the prior four fiscal quarters by
(b) average common stockholders equity, excluding AOCI. ROE - Net
income is the most directly comparable U.S. GAAP measure. The company
excludes AOCI in the calculation of ROE - Core earnings to provide
investors with a measure of how effectively the company is investing the
portion of the companys net worth that is primarily attributable to the
companys business operations. The company provides to investors
return-on-equity measures based on its non-GAAP core earnings financial
measures for the reasons set forth in the related discussion above.

A reconciliation of Consolidated ROE - Net income to Consolidated ROE -
Core earnings is set forth below.

Underlying combined ratio: Represents the
combined ratio before catastrophes and prior accident year development
(PYD) and is a non-GAAP financial measure. Combined ratio is the most
directly comparable GAAP measure. The combined ratio is the sum of the
loss and loss adjustment expense ratio (also known as a loss ratio), the
expense ratio and the policyholder dividend ratio. This ratio measures
the cost of losses and expenses for every $100 of earned premiums. A
combined ratio below 100 demonstrates a positive underwriting result. A
combined ratio above 100 indicates a negative underwriting result. The
underlying combined ratio represents the combined ratio for the current
accident year, excluding the impact of current accident year
catastrophes. The company believes this ratio is an important measure of
the trend in profitability since it removes the impact of volatile and
unpredictable catastrophe losses and prior accident year loss and loss
adjustment expense reserve. A reconciliation of the combined ratio to
the underlying combined ratio for individual reporting segments can be
found in this press release under the heading "Second Quarter 2017
Segment Financial Results Summary."

Underwriting gain (loss): The Hartfords
management evaluates profitability of the Commercial and Personal Lines
segments primarily on the basis of underwriting gain or loss.
Underwriting gain (loss) is a before tax measure that represents earned
premiums less incurred losses, loss adjustment expenses and underwriting
expenses. Net income (loss) is the most directly comparable GAAP
measure. Underwriting gain (loss) is influenced significantly by earned
premium growth and the adequacy of The Hartfords pricing. Underwriting
profitability over time is also greatly influenced by The Hartfords
underwriting discipline, as management strives to manage exposure to
loss through favorable risk selection and diversification, effective
management of claims, use of reinsurance and its ability to manage its
expenses. The Hartford believes that the measure underwriting gain
(loss) provides investors with a valuable measure of profitability,
before tax, derived from underwriting activities, which are managed
separately from the companys investing activities. A reconciliation of
underwriting results to net income for the quarterly periods ended
June 30, 2017 and 2016, is set forth in the Investor Financial
Supplement for quarter ended June 30, 2017, which is available on The
Hartfords website, https://ir.thehartford.com.

SAFE HARBOR STATEMENT

Some of the statements in this release should be considered
forward-looking statements as defined in the Private Securities
Litigation Reform Act of 1995. Forward-looking statements can be
identified by words such as "anticipates," "intends," "plans," "seeks,"
"believes," "estimates," "expects," "projects" and similar references to
the future. Examples of forward-looking statements include, but are not
limited to, statements the company makes regarding future results of
operations. The Hartford cautions investors that these forward-looking
statements are not guarantees of future performance, and actual results
may differ materially. Investors should consider the important risks and
uncertainties that may cause actual results to differ. These important
risks and uncertainties include the risks and uncertainties identified
below, as well as factors described in such forward-looking statements
or in The Hartfords 2016 Annual Report on Form 10-K, Quarterly Reports
on Form 10-Q and other filings The Hartford makes with the Securities
and Exchange Commission.

Risks Relating to Economic, Political and Global
Market Conditions: challenges related to the companys current
operating environment, including global political, economic and market
conditions, and the effect of financial market disruptions, economic
downturns or other potentially adverse macroeconomic developments on the
demand for our products, returns in our investment portfolios and the
hedging costs associated with our run-off annuity block; financial risk
related to the continued reinvestment of our investment portfolios and
performance of our hedge program for our run-off annuity block; market
risks associated with our business, including changes in credit spreads,
equity prices, interest rates, inflation rate, market volatility and
foreign exchange rates; the impact on our investment portfolio if our
investment portfolio is concentrated in any particular segment of the
economy;

Insurance Industry and Product-Related Risks:
the possibility of unfavorable loss development including with respect
to long-tailed exposures; the possibility of a pandemic, earthquake, or
other natural or man-made disaster that may adversely affect our
businesses; weather and other natural physical events, including the
severity and frequency of storms, hail, winter storms, hurricanes and
tropical storms, as well as climate change and its potential impact on
weather patterns; the possible occurrence of terrorist attacks and the
companys inability to contain its exposure as a result of, among other
factors, the inability to exclude coverage for terrorist attacks from
workers compensation policies and limitations on reinsurance coverage
from the federal government under applicable laws; the companys ability
to effectively price its property and casualty policies, including its
ability to obtain regulatory consents to pricing actions or to
non-renewal or withdrawal of certain product lines; actions by
competitors that may be larger or have greater financial resources than
we do; technological changes, such as usage-based methods of determining
premiums, advancements in automotive safety features, the development of
autonomous vehicles, and platforms that facilitate ride sharing, which
may alter demand for the companys products, impact the frequency or
severity of losses, and/or impact the way the company markets,
distributes and underwrites its products; the companys ability to
market, distribute and provide insurance products and investment
advisory services through current and future distribution channels and
advisory firms; the uncertain effects of emerging claim and coverage
issues; volatility in our statutory and United States ("U.S.") Generally
Accepted Accounting Principles ("GAAP") earnings and potential material
changes to our results resulting from our risk management program to
emphasize protection of economic value;

Financial Strength, Credit and Counterparty Risks:
the impact on our statutory capital of various factors, including many
that are outside the companys control, which can in turn affect our
credit and financial strength ratings, cost of capital, regulatory
compliance and other aspects of our business and results; risks to our
business, financial position, prospects and results associated with
negative rating actions or downgrades in the companys financial
strength and credit ratings or negative rating actions or downgrades
relating to our investments; losses due to nonperformance or defaults by
others, including sourcing partners, derivative counterparties and other
third parties; the potential for losses due to our reinsurers
unwillingness or inability to meet their obligations under reinsurance
contracts and the availability, pricing and adequacy of reinsurance to
protect us against losses;

Risks Relating to Estimates, Assumptions and
Valuations: risk associated with the use of analytical models in
making decisions in key areas such as underwriting, capital management,
hedging, reserving, and catastrophe risk management; the potential for
differing interpretations of the methodologies, estimations and
assumptions that underlie the companys fair value estimates for its
investments and the evaluation of other-than-temporary impairments on
available-for-sale securities; the potential for further acceleration of
deferred policy acquisition cost amortization and an increase in reserve
for certain guaranteed benefits in our variable annuities; the potential
for further impairments of our goodwill or the potential for changes in
valuation allowances against deferred tax assets; the significant
uncertainties that limit our ability to estimate the ultimate reserves
necessary for asbestos and environmental claims;

Strategic and Operational Risks: risks
associated with the run-off of our Talcott Resolution business; the
companys ability to maintain the availability of its systems and
safeguard the security of its data in the event of a disaster, cyber or
other information security incident or other unanticipated event; the
risks, challenges and uncertainties associated with our capital
management plan, expense reduction initiatives and other actions, which
may include acquisitions, divestitures or restructurings; the potential
for difficulties arising from outsourcing and similar third-party
relationships; the companys ability to protect its intellectual
property and defend against claims of infringement;

Regulatory and Legal Risks: the cost and
other potential effects of increased regulatory and legislative
developments, including those that could adversely impact the demand for
the companys products, operating costs and required capital levels;
unfavorable judicial or other legal developments; regulatory
requirements that could delay, deter or prevent a takeover attempt that
shareholders might consider in their best interests; and the impact of
potential changes in accounting principles and related financial
reporting requirements.

Any forward-looking statement made by the company in this release speaks
only as of the date of this release. Factors or events that could cause
the companys actual results to differ may emerge from time to time, and
it is not possible for the company to predict all of them. The company
undertakes no obligation to publicly update any forward-looking
statement, whether as a result of new information, future developments
or otherwise.